In the face of escalating demand by Nigerians for foreign exchange for both goods and services, the Central Bank of Nigeria (CBN) has assured that it will continue to make targeted efforts in the foreign exchange sector to prevent further slide in the value of the Naira, which it says is being fueled by speculative tendencies.
The CBN’s Director of Corporate Communications, Osita Nwanisobi, yesterday advised the public to resist the urge to indulge in speculative activities by some players in the foreign exchange market.
Reiterating an earlier position of the CBN Governor, Godwin Emefiele, he urged Nigerians to do their part by adjusting their consumption patterns, looking inward and finding innovative solutions to the challenges facing the country.
He explained that monetary policy alone cannot bear the entire burden of the expected adjustments needed to address the challenges facing the Nigerian currency, cautioning, “It is our collective duty as Nigerians to support the value of the Naira.”
According to him, the CBN remains committed to solving the country’s foreign exchange problems and is therefore working to address both demand and supply side challenges.
The spokesman said that the CBN Bank’s recent initiatives such as the RT200 FX program and the Naira4Dollar rebate program have helped to increase foreign exchange inflows into the country.”
According to him, the bank’s records showed that foreign exchange inflows through the RT200 FX program increased significantly in the first and second quarters of 2022 to about $600 million in June 2022.
Similarly, he shared that the Naira4Dollar incentive also increased the volume of diaspora remittances in the first half of the year.
Nwanisobi continued, “Interventions such as the 100 for 100 policy on production and productivity, the Anchor Borrower Program (ABP), and the Non Oil Export Stimulation Facility (NESF), among others, were aimed at diversifying the economy, increasing foreign exchange inflows, stimulating production, and reducing pressure on foreign exchange demand.”
While acknowledging that there was tremendous demand pressure for foreign exchange to meet the needs of manufacturers as well as those to pay for tuition, medical visits and other intangibles, Nwanisobi said the bank was concerned about the international value of the naira, adding that the monetary authority was pursuing a strategy to help Nigeria achieve more stable and sustainable foreign exchange inflows in the face of dwindling inflows from the oil sector.